Insurance 101

Insurance is one of the most important financial products to consider. When you have proper types and levels of insurance, it can help save you from depleting your savings to cover unforeseen expenses.

How insurance works

When you pay the insurance company, your premium dollars are pooled together with the payments of thousands of other clients. Other than life insurance, if a policyholder suffers a financial loss that's covered by the policy, the insurer pays for the covered amount in accordance with the terms of the policy, less any deductible or co-pay. Life insurance provides a sum of money for your beneficiary(ies) in the event of your death.

Common types of insurance

Type

Covers

Automobile

Damages if your car, other property or people are hurt while you're driving or damage to your car caused by vandalism or acts of nature.

Home

Expenses for repair or replacement of your home and its contents due to fire, storms, vandalism or other unplanned events.

Health

Costs of doctor visits, surgery, hospital stays,medicine and other similar expenses.

Life

A death benefit to your beneficiary - usually someone who is dependent on you for income.

The real benefit of insurance

When you purchase insurance, there is no expectation that your premium dollars will be returned to you. Nevertheless, most policyowners consider themselves fortunate if they never have to file a claim. That is because they have been able to avoid, or help minimize, the hardship that often goes along with financial damages. In a sense, the underlying benefit of insurance is the peace of mind knowing that if anything covered by the policy happens, you may not have to incur the complete expense on your own.

Are you due for an insurance checkup?

It is a good idea to assess your insurance needs at least once a year, or whenever you experience a significant life event. Any big change that affects your overall financial picture can also impact your life insurance coverage needs.

Revisit your insurance needs whenever you:

Change jobs

Buy or sell a home

Get married or divorced

Have a child

One of the best ways to make sure you have the insurance you need is to talk with an insurance company or agent that you trust.

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The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons.

TIAA-CREF Life Insurance Company, New York, New York.

† Web seminars are best viewed using a high speed Internet connection (such as DSL, ISDN, or cable access). Macromedia Flash Player 6.0.79 or higher, or Macromedia Flash Player 7 or higher for Linux and Solaris is required.

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The material is for informational purposes only and should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. Certain products and services may not be available to all entities or persons.

TIAA-CREF Life Insurance Company, New York, New York.

† Web seminars are best viewed using a high speed Internet connection (such as DSL, ISDN, or cable access). Macromedia Flash Player 6.0.79 or higher, or Macromedia Flash Player 7 or higher for Linux and Solaris is required.